Toronto Home Prices Fall Ninth Month Amid Rising Listings

Toronto's housing market continues to experience downward pressure with home prices declining for the ninth consecutive month, slipping 0.1% from July to a benchmark price of C$978,100 in August. Despite a slight 2.3% year-over-year increase in sales, the market is marked by a significant rise in new listings—up around 9 to 10% depending on the source—and a surplus of inventory, leading to a buyer's market where buyers have increased negotiating power. Detached homes have seen the steepest price drop, plummeting 10% year-over-year, contributing to an overall 5.2% decline in average prices compared to last August. High borrowing costs continue to suppress demand, with many buyers hoping for an anticipated Bank of Canada interest rate cut to ease affordability challenges and stimulate sales. These trends reflect broader economic uncertainties, including the impact of U.S. tariffs on Ontario's manufacturing sectors, which have dampened economic growth and influenced housing market dynamics. Market experts note that while sales are down month-over-month for the first time since March, the potential for rate cuts could help stabilize the market and support the wider economy.